The hotel was bought by PAG Hotels Ltd in September 2007 but PAG Hotels Ltd went into administration in July 2010. Venlaw Castle Hotel opened in 1949 and remained in the family until November 1997, when it was bought by John and Shirley Sloggie and renamed Castle Venlaw Hotel. The present house was built for Alexander Stevenson, Sheriff Deputy of Peebleshire, on the site in 1782. It then passed to Richard Davidson, a retired tea planter, and then to a Miss Walton in 1946. It remained in the Stevenson family until it was bought by the Grant family in 1790 and then by the Erskine family in 1798.